Fundamental News and Triggers
Precious metals kick-start the New Year on a strong note
- Precious metals began the New Year with gold climbing 1% and silver rising 3%, extending their surge after huge gains in 2025, as geopolitical worries and optimism for lower interest rates this year kept safe-haven demand strong.
- Persistent geopolitical instability, hopes of reduced US borrowing costs, continued central bank purchases, and increased inflows into gold-backed exchange-traded funds have all contributed to the rally.
- Meanwhile, minutes from the Federal Reserve’s December meeting, which were released earlier this week, revealed an increasing willingness among policymakers to loosen monetary policy if inflation continues to fall, but officials were divided on the timing and extent of prospective rate reduction.
- Geopolitical tensions remained high, with the US increasing enforcement against Venezuela’s oil trade, while fresh Russia-Ukraine strikes throughout the New Year holiday targeted Black Sea ports and critical energy infrastructure.
Technical Triggers
- Gold prices are expected to consolidate in the range of $4320 (~Rs 134,000) and $4420 (~Rs 137,000) after the sharp rally and sell off this week.
- Silver prices are expected to consolidate between $70 (~Rs 223,000) and $78 (~Rs 250,000), after the sharp rally and sell off this week.
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